Act on General Rules for National Taxes

If a tax payment grace period has been granted under the provisions of Article 46, paragraph (1) or paragraph (2), item (i), (ii) or (v) (limited to the part concerning facts similar to facts that fall under item (i) or (ii) of that paragraph) (Tax Payment Grace Period due to a Disaster, etc.) (hereinafter referred to as a "tax payment grace period due to a disaster, etc." in this paragraph) or the execution of the delinquent tax collection procedure has been suspended under the provisions of Article 153, paragraph (1) (Suspension of Delinquent Tax Collection Procedure) of the National Tax Collection Act, or if a tax payment grace period has been granted under the provisions of Article 46, paragraph (2), item (iii), (iv) or (v) (limited to the part concerning facts similar to facts that fall under item (iii) or (iv) of that paragraph) or paragraph (3) (hereinafter referred to as a "tax payment grace period due to discontinuance of business, etc." in this paragraph) or a grace period for realization has been granted under the provisions of Article 151, paragraph (1) or Article 151-2, paragraph (1) (Requirements for Grace Period for Realization) of that Act, then, of the delinquent tax on the national tax for which the grace period has been granted or the execution has been suspended, the amount equivalent to the amount of the portion corresponding to the period of the tax payment grace period due to a disaster, etc. or of that suspension of execution, or the amount equivalent to one half of the amount of the portion corresponding to the period of the tax payment grace period due to discontinuance of business, etc. or of that grace period for realization (limited to the period after the day on which two months have elapsed from the day following the due date for payment of that national tax), respectively, is exempted; provided, however, that if a fact has arisen that would be grounds for revocation under the provisions of Article 49, paragraph (1) (Revocation of Tax Payment Grace Period) (including as applied mutatis mutandis pursuant to Article 152, paragraph (3) or (4) (Installment Payment, Notice, etc. concerning Grace Period for Realization) of that Act) or Article 154, paragraph (1) (Revocation of Suspension of Delinquent Tax Collection Procedure) of that Act, the regional commissioner, district director or director-general of a customs house may decline to grant the exemption for the amount of the portion corresponding to the period on and after the day on which that fact arose.

If the due date for payment of a national tax has been extended under the provisions of Article 11 (Extension of Time Limits), the amount of the portion of the delinquent tax on that national tax corresponding to the period of that extension is exempted.

Where a tax payment grace period or a grace period for realization under the provisions of Article 151, paragraph (1) or Article 151-2, paragraph (1) of the National Tax Collection Act has been granted, if the taxpayer falls under any of the following items, the regional commissioner, district director or director-general of a customs house may exempt the delinquent tax on the national tax for which the grace period has been granted (excluding the portion exempted under the provisions of the preceding two paragraphs; the same applies hereinafter in this paragraph), up to the amount of the portion corresponding to the grace period (including, if the regional commissioner, district director or director-general of a customs house finds that there are unavoidable reasons for the failure to pay that national tax within that period, the period from the day following the last day of the grace period until the day on which those unavoidable reasons ceased) that is found to be difficult to pay:

where the state of the taxpayer's property is extremely poor, and it is found that it would become extremely difficult for the taxpayer to continue their business or maintain their livelihood unless local taxes, public charges or debts whose payment period or due date for performance has arrived are reduced or exempted, and such reduction or exemption has been granted; or

where it is found that there are unavoidable reasons that make it difficult for the taxpayer to pay the delinquent tax due to the state of the taxpayer's business or livelihood.

If a collection grace period has been granted for a national tax pursuant to the proviso to Article 23, paragraph (5) (Relationship between Request for Reassessment and Collection of National Tax) or other provisions of the national tax laws, the amount equivalent to one half of the amount of the portion of the delinquent tax on the national tax under that grace period that corresponds to the period, within the grace period, after the day on which two months have elapsed from the day following the due date for payment of that national tax (if delinquent tax has been exempted under the provisions of the preceding three paragraphs, excluding any period that falls within the period to which that exemption pertains) is exempted.

If the regional commissioner, district director or director-general of a customs house has made a seizure (including a disposition equivalent to seizure that, in the case where a request has been made, based on the provisions of a tax treaty, etc., to the treaty partner of that tax treaty, etc. for assistance in the collection of a national tax subject to collection assistance or for assistance in the conservation of property for collection, that treaty partner makes under the laws and regulations of that treaty partner with regard to that national tax subject to collection assistance; the same applies hereinafter in this paragraph) of property necessary to collect the full amount of a delinquent national tax, or has received the provision of security equivalent to the payable tax amount (including the provision of security that, in the case where a request has been made, based on the provisions of a tax treaty, etc., to the treaty partner of that tax treaty, etc. for assistance in the collection of a national tax subject to collection assistance or for assistance in the conservation of property for collection, that treaty partner receives under the laws and regulations of that treaty partner with regard to that national tax subject to collection assistance; the same applies hereinafter in this paragraph), they may exempt the delinquent tax calculated on the basis of the national tax to which the seizure or the provision of security pertains, up to the amount equivalent to one half of the amount of the portion corresponding to the period, within the period during which the seizure or the provision of security is in effect, after the day on which two months have elapsed from the day following the due date for payment of that national tax (if delinquent tax has been exempted under the provisions of the preceding paragraphs, excluding any period that falls within the period to which that exemption pertains).

If any of the following items applies, the regional commissioner, district director or director-general of a customs house may exempt the delinquent tax on the national tax prescribed in the relevant item (excluding the portion exempted under the provisions of the preceding paragraphs), up to the amount of the portion corresponding to the period listed in that item:

where a financial institution that has been re-consigned the collection of securities and the payment of national tax under the provisions of Article 55, paragraph (3) (Consignment of Payment) (including as applied mutatis mutandis pursuant to Article 52, paragraph (6) (Collection from Guarantors) or Article 32, paragraph (3) (Collection from Persons Secondarily Liable for Tax Payment) of the National Tax Collection Act) has paid the national tax after the day on which it was to collect those securities (excluding where the person who requested the collection of those securities is responsible for the payment having been made after that day): the period from the day following that day until the day on which the payment was made;

where a designated financial institution prescribed in Article 2, paragraph (2) (Definitions) of the Tax Fund Saving Partnership Act (Act No. 145 of 1951) (excluding one that is able to receive national tax) that has been entrusted with the payment of national tax under the provisions of Article 6, paragraph (1) (Entrustment of Tax Payment) of that Act has paid the national tax after the day on which it was so entrusted (excluding where the taxpayer is responsible for the payment having been made after that day): the period from the day following that day until the day on which the payment was made;

where, due to an earthquake, flood, wind, fire or any other similar disaster, circumstances have arisen in which national tax cannot be paid: the period from the day on which those circumstances arose until the day on which seven days have elapsed from the day on which those circumstances ceased to exist; or

where a fact similar to a fact that falls under any of the preceding three items has arisen, in the case specified by Cabinet Order: the period specified by Cabinet Order.

A taxpayer of national tax subject to postponement of tax payment or payment in kind or to an extension of the due date for filing a tax return must pay interest tax together with that national tax, as provided for in the national tax laws.

The period that is the basis for the calculation of the amount of interest tax is not included in the period prescribed in Article 60, paragraph (2) (Delinquent Tax).

The provisions of Article 60, paragraph (4), Article 61, paragraph (2) (Special Provisions for Base Period for Calculation of Amount of Delinquent Tax), Article 62 (Calculation of Amount of Delinquent Tax in the Case of Partial Payment, etc.), and paragraphs (2) and (6) of the preceding Article apply mutatis mutandis to interest tax. In this case, the phrase "notwithstanding the provisions of the preceding paragraph, from the period prescribed in paragraph (2) of the preceding Article, the following periods (for national tax payable by filing a specified amended return or based on a specified reassessment and any other national tax specified by Cabinet Order, limited to the period listed in item (i))" in Article 61, paragraph (2) is deemed to be replaced with "from the period that is the basis for the calculation of the amount of interest tax, the period from the day following the day on which the tax amount payable by filing the return filed by the due date or the return filed after the due date was paid (if such day precedes the due date for filing referred to in Article 64, paragraph (1) (Interest Tax), that due date for filing) until the statutory tax return due date".